Trade - Key Terms

Question 0

Imports?

Answer 0

Goods going into a country

Question 1

Trade?

Answer 1

The exchange of goods and services between countries

Question 2

Exports?

Answer 2

Goods going out of a country

Question 3

Balance of payment?

Answer 3

A record of all payments and receipts, difference of total payments in and out of a country

Question 4

Trade deficit?

Answer 4

The amount of money on imports exceeds that of exports, buying in more than earning

Question 5

Trade surplus?

Answer 5

Exports values exceeds imports values

Question 6

Free trade?

Answer 6

International trade with no tariffs, quotas or other restrictions

Question 7

Protectionism?

Answer 7

The practise of shielding a country’s domestic industries from foreign competition by taxing imports

Question 8

Visible trade?

Answer 8

When goods are exchanged that can be counted, weighed and given a value (eg. Raw materials, foodstuffs and manufactured goods)

Question 9

Invisible trade?

Answer 9

When services are exchanged (eg. Tourism, earning from workers overseas)

Question 10

Primary products?

Answer 10

Raw materials from which other products products can be manufactured; are made in that country (eg. Natural rubber, crude oil)

Question 11

Secondary products?

Answer 11

Manufactured goods which may need to be imported as they are not made there; can reflect freedom of choice, wealth rather than need (eg. Cars)